The drop down option for part B is either increase or decrease for both. Thanks!

Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $925,000 and total current liabilities of $632,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the levels of the current asset and current liability accounts noted. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. The change in net working capital is $ Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. (Select from the drop-down menus.) Analysis of the purchase of a new machine reveals in net working capital. This should be treated as an initial outlay and is a cost of acquiring the new machine